D&D London owners in advanced talks to buy TGI Fridays UK: The owners of D&D London are in talks to buy the UK operations of TGI Fridays, whose parent company collapsed into administration last week. Breal Capital and Calveton, which acquired D&D London last year, are in advanced negotiations to take on TGI Fridays’ British franchise. Industry sources told Sky News the deal was likely to see the new owners taking over the majority of its 89 sites, but that a significant number of jobs were nevertheless expected to be lost. One analyst estimated that between 50 and 60 TGI Fridays sites were commercially viable, which they said was likely to mean the new owners would be able to save roughly three-quarters of TGI Fridays' current UK workforce of about 3,200 people. Propel understands a new company called Calverton Texas Ltd has been set up today (Monday, 23 September). Hostmore, the parent company of TGI Fridays, said last week that it was filing for administration but this would have no impact on Thursdays, the trading subsidiary. However, the operating business is itself understood to have filed a notice of intention to appoint administrators today. Hostmore said in a statement to the London Stock Exchange last week: “The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the Group's capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12m, significantly reduce losses from unprofitable stores, and operate the group's stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record. Unfortunately, all of the board's efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board's control.” It was unclear how much Breal and Calveton were likely to pay for TGI Fridays in the UK, although one industry source expressed confidence in their ability to run a slimmed-down version of the business successfully. The deal is understood to include the brand’s existing leases and the right to use the TGI Fridays brand in the UK. The collapse of TGI Fridays' UK parent comes less than six months after it struck a £177m deal to reverse the US restaurant business of the same name into London-listed Hostmore. However, those plans were scrapped after the US company lost control of key assets. Propel revealed last week that two unnamed family offices were running the rule over the UK arm of TGI Fridays, but that only one remained in the process – and even a successful deal could still see up to circa 20 sites close as part of any restructuring. Breal, Hostmore and Teneo, which is handling the administration, declined to comment, while Calveton could not be reached for comment. Hostmore features in the Premium Club Turnover & Profits Blue Book, which features 978 companies. Hostmore’s turnover of £190,700,000 for the year ending 31 December 2023 is the 63rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.